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General guidance only. This page does not constitute legal or financial advice. For advice specific to your situation, please consult a qualified family law solicitor or a free advice service.

You are still in proceedings

This is the most difficult position — you are in the middle of something expensive, emotionally exhausting, and financially constrained, and the funding arrangement is actively running. Your options are more limited right now, but they are real.

What you need to know

Loan Information

The loan doesn't stop

Even if you dismiss your solicitor, the funding agreement is between you and the funder — not you and your solicitor. The debt continues and interest accrues.

You can change solicitors

You have the right to change solicitors at any point, though there may be exit costs. A new solicitor may be able to negotiate a more favourable arrangement or explore alternatives.

LSPOs exist

A Legal Services Payment Order can require your spouse to contribute to your legal costs. You may now qualify even if you were initially refused. A solicitor can advise on whether to apply.

Mediation can reduce costs

If circumstances have changed and settlement now seems possible, a mediated agreement could resolve proceedings sooner — limiting further interest accrual.

Language to use with your solicitor

You have every right to ask these questions directly. Write them down and bring them to your next meeting:

→ What is the current total outstanding on my litigation loan, including accrued interest?
→ At the current rate of proceedings, what do you project the total cost will be?
→ Have you considered whether I would now qualify for a Legal Services Payment Order?
→ What are the implications if I choose to change solicitors at this stage?
→ Is there any prospect of mediation or early settlement that would reduce the overall cost?

Free help during proceedings

Citizens Advice can provide free guidance on your rights during divorce proceedings. Resolution maintains a directory of family solicitors, some of whom offer free first consultations. If domestic abuse is a factor, free specialist legal help may be available.

Free help right now

Talk to someone today — for free.

Key terms explained

Also useful

General guidance only. This page does not constitute legal or financial advice. For advice specific to your situation, please consult a qualified solicitor or regulated debt adviser.

Your divorce is done, but debt remains

This is one of the most painful situations — you have been through the process, and instead of freedom you have a debt. You may feel angry, ashamed, or simply exhausted. All of those feelings are entirely justified.

The divorce decree did not make this debt go away. But you have more options than you may think.

Your options — in order of simplicity

1

Get a free debt assessment first

Before doing anything else, speak to StepChange or Citizens Advice. A free debt adviser will give you a complete picture of your situation and your options — without selling you anything.

2

Review the funder's conduct

If you believe the funder or your solicitor failed to explain the terms adequately, you may have grounds for a formal complaint. Start with a written letter of complaint to the funder. If unsatisfied, escalate to the Financial Ombudsman Service.

3

Negotiate directly with the funder

Funders will sometimes accept a reduced lump sum or negotiate a payment plan. This is more likely if you can demonstrate financial hardship. A debt adviser can help you present this case.

4

Consider a Debt Management Plan or IVA

If the debt is unmanageable, a Debt Management Plan (informal, through a charity) or an Individual Voluntary Arrangement (formal, legally binding) may offer a structured path out. Both affect your credit file.

5

Professional negligence — is it relevant?

If your solicitor failed in their duty of care — for example, by introducing you to a funder without disclosing a financial relationship, or by failing to advise on alternatives — a professional negligence claim may be possible. This requires specialist advice.

Free debt advice

All free, all confidential.

Complaint routes

Key terms

Act, but don't panic.

A creditor has contacted you

This is frightening. But you have legal rights in this situation, and a creditor contacting you does not mean the situation is out of control. Here is what to do — in order.

Immediate steps

→ Do not ignore the contact — ignoring creditors escalates the situation and limits your options.
→ Do not pay immediately — wait until you understand the full picture and have verified the debt.
→ Request a full statement of account — you are entitled to a written breakdown of the total claimed, how interest was calculated, and the dates of all transactions.
→ Check the debt is yours — verify the amount, the original agreement, and that the claim is within the limitation period (usually 6 years in England and Wales).
→ Call a free debt helpline — before doing anything else, speak to National Debtline or StepChange.

What a creditor can and cannot do

Debt Collection Rules

They CAN contact you

By letter, phone, or email — but they must not harass, threaten, or mislead you. The FCA's debt collection rules apply.

They CAN apply for a CCJ

A County Court Judgement is a court order to repay. It affects your credit file for 6 years. You can respond and dispute it before judgment is entered.

They CAN apply for a charging order

After a CCJ, they may apply to secure the debt against your property. This does not mean immediate repossession.

They CANNOT enter your home

Bailiffs require a separate court order. A creditor or debt collector has no right to enter your home without this.

They CANNOT threaten prison

Consumer debt is not a criminal matter. Anyone who threatens you with arrest or imprisonment for this type of debt is breaking FCA rules.

Call now — it's free

Do not face creditors alone.